POST UTME CALEB UNIVERSITY 2023 Commerce | Objective

Are you preparing for POST UTME CALEB UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2023 Commerce (Objective) questions designed to simulate the real exam environment.

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Question 1
In a perfectly competitive market, the supply curve is upward-sloping and the demand curve is downward-sloping. What is the equilibrium price and quantity of a commodity in such a market?
A. ₦500, 100 units
Correct B. ₦300, 200 units
C. ₦200, 300 units
D. ₦400, 150 units

Correct Answer: B

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Question 2
A company's break-even point is ₦100,000, and its contribution margin is ₦20,000. What is the selling price of the product?
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 3
A firm's cost function is given by C(x) = 2x^2 + 10x + 5. What is the marginal cost when x = 5?
A. ₦30
B. ₦40
Correct C. ₦50
D. ₦60

Correct Answer: C

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Question 4
A company has a fixed cost of ₦50,000 and a variable cost of ₦10 per unit. If it sells 100 units, what is its total revenue?
A. ₦1,000,000
Correct B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000

Correct Answer: B

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Question 5
A firm's revenue function is given by R(x) = 3x^2 - 2x + 1. What is the rate of change of revenue with respect to x when x = 2?
A. ₦10
B. ₦20
Correct C. ₦30
D. ₦40

Correct Answer: C

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Question 6
A company's production function is given by the Cobb-Douglas production function: ( Q = 10K^0.4L^0.6 ), where Q is the quantity produced, K is the capital stock, and L is the labor force. If the capital stock increases by 20% and the labor force remains constant, what is the percentage increase in the quantity produced?
A. 10%
Correct B. 20%
C. 30%
D. 40%

Correct Answer: B

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Question 7
A sole trader, Mr. A, has a business that generates an average profit of ₦1,500 per day. If he operates for 300 days in a year, what is his total profit for the year?
Correct A. ₦450,000
B. ₦450,000
C. ₦450,000
D. ₦450,000

Correct Answer: A

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Question 8
A company's marketing strategy involves a 20% discount on all products for the first 100 customers. If the original price of a product is ₦2,000, what is the price for the first 100 customers?
Correct A. ₦1,600
B. ₦1,800
C. ₦1,600
D. ₦1,800

Correct Answer: A

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Question 9
A consumer protection agency has identified a company that has been engaging in unfair business practices. The agency has the power to impose a fine of up to ₦5 million on the company. If the company has a net worth of ₦10 million, what is the maximum percentage of its net worth that the fine represents?
Correct A. 50%
B. 50%
C. 50%
D. 50%

Correct Answer: A

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Question 10
A company's production process involves the use of a machine that has a 10% chance of breaking down. If the machine breaks down, the production process is halted for 2 hours. What is the expected value of the time lost due to machine breakdowns per day?
A. 0.2 hours
Correct B. 0.4 hours
C. 0.6 hours
D. 0.8 hours

Correct Answer: B

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Question 11
A sole trader's business is registered under which of the following?
A. Partnership
B. Limited Liability Company
Correct C. Sole Proprietorship
D. Cooperative Society

Correct Answer: C

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Question 12
A company's financial statements are audited annually by an independent auditor. What is the primary purpose of this audit?
A. To verify the company's tax returns
B. To ensure compliance with regulatory requirements
Correct C. To provide an opinion on the company's financial position
D. To identify areas for cost reduction

Correct Answer: C

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Question 13
A marketing manager is tasked with increasing sales by 15% within the next quarter. What is the most effective strategy to achieve this goal?
A. Increase the price of the product
B. Reduce the advertising budget
C. Improve the product's packaging
Correct D. Increase the sales force

Correct Answer: D

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Question 14
A company has a 10% dividend yield on its shares. If the current market price of the share is ₦100, what is the annual dividend payment per share?
Correct A. ₦10
B. ₦12
C. ₦15
D. ₦20

Correct Answer: A

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Question 15
A risk management strategy involves diversifying investments across different asset classes. What is the primary benefit of this approach?
A. To increase potential returns
Correct B. To reduce potential losses
C. To improve liquidity
D. To enhance creditworthiness

Correct Answer: B

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Question 16
The concept of comparative advantage in international trade suggests that countries should specialize in producing goods for which they have a lower opportunity cost. What is the opportunity cost of producing a good?
Correct A. The value of the good in terms of other goods that could be produced instead
B. The cost of producing the good in terms of labor and resources
C. The price of the good in the international market
D. The quantity of the good produced

Correct Answer: A

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Question 17
A firm's production function is given by Q = 2L^0.5K^0.5, where Q is the quantity produced, L is labor, and K is capital. If the firm wants to produce 100 units of output, how much labor should it hire if it has 16 units of capital?
A. 8 units of labor
B. 16 units of labor
Correct C. 32 units of labor
D. 64 units of labor

Correct Answer: C

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Question 18
A country's trade balance is given by the equation TB = X - M, where TB is the trade balance, X is exports, and M is imports. If the country's exports are 100 billion naira and its imports are 80 billion naira, what is the trade balance?
Correct A. 10 billion naira
B. 20 billion naira
C. 30 billion naira
D. 40 billion naira

Correct Answer: A

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Question 19
A firm's demand function is given by Q = 100 - 2P, where Q is the quantity demanded and P is the price. If the firm wants to sell 50 units of output, what price should it charge?
A. 20 naira
Correct B. 30 naira
C. 40 naira
D. 50 naira

Correct Answer: B

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Question 20
A country's inflation rate is given by the equation IR = (P1 - P0) / P0, where IR is the inflation rate, P1 is the current price level, and P0 is the previous price level. If the current price level is 120 and the previous price level was 100, what is the inflation rate?
A. 0.2
Correct B. 0.4
C. 0.6
D. 0.8

Correct Answer: B

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Question 21
A sole trader's business is considered a separate legal entity from its owner. However, the owner's personal assets are not protected in case of business liabilities. What is the name of this business structure?
Correct A. Sole Trader
B. Partnership
C. Limited Liability Company
D. Cooperative

Correct Answer: A

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Question 22
A company's production process involves the use of specialized machinery. This specialization allows the company to produce a higher quality product. What is the term for this production process?
A. Mass Production
B. Batch Production
C. Job Production
Correct D. Specialization

Correct Answer: D

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Question 23
A consumer purchases a product from a company, but the product is defective. The consumer sues the company for damages. What is the name of this type of law?
A. Contract Law
B. Tort Law
Correct C. Consumer Protection Law
D. Employment Law

Correct Answer: C

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Question 24
A company uses a third-party logistics provider to transport its goods. The logistics provider is responsible for ensuring the goods are delivered on time. What is the term for this type of transportation?
A. In-House Transportation
B. Outsourced Transportation
Correct C. Third-Party Logistics
D. Freight Forwarding

Correct Answer: C

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Question 25
A company purchases an insurance policy to protect against business risks. The policy covers losses due to natural disasters. What is the name of this type of insurance?
A. Liability Insurance
B. Property Insurance
C. Business Interruption Insurance
Correct D. Disaster Insurance

Correct Answer: D

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